BackIRB Infra Q3 PAT doubles to ₹141 Cr, robust growth seen in toll revenue
With a market worth of ₹17,570.47 Cr, IRB Infrastructure Ltd. is a mid-size company that engages in the industrial and construction sectors.
PremiumWith a market worth of ₹17,570.47 Cr, IRB Infrastructure Ltd. is a mid-size company that engages in the industrial and construction sectors. IRB has an asset base of about Rs.60,000 Cr. across 10 States across the parent company and two InvITs, making it the largest integrated private toll roads and highways infrastructure developer in India. It holds a roughly 20% stake in the renowned Golden Quadrilateral project in India, the largest by a private infrastructure developer and the country's first international player in the highways sector.
During today's board meeting, the company released its financial results for the third quarter of FY23. A 94% rise in net profit was recorded by the corporation during the third quarter that concluded on December 31, 2022. It has reported a net profit of Rs. 141 Crs in Q3FY23 compared to ₹73 Crs in the year-ago quarter. The total income for the same period was Rs. 1,570 crores, up 5% YoY from Rs. 1,498 crores in the corresponding quarter of FY22. The EBITDA of IRB Infra reached ₹801 Cr in Q3FY23 compared to ₹957 Cr in Q3FY22, representing a fall of 16%.
For the company and its private InvIT entities, there was a robust and steady increase in toll revenue both YoY and MoM during the third quarter of FY23. In January of this year, the company recorded a 36% YoY increase in toll collection rising from ₹276.44 crores in the same month the previous year to ₹374.81 crores.
IRB Infrastructure has said in a stock exchange filing that it has completed the refinancing of another BOT Asset - i.e., a total of 3 assets refinanced within 2 quarters - under Private InvIT, through allotment of redeemable NCDs on a private placement basis. The Meerut to Budaun Expressway Project (Ganga Expressway Group 1 Project), the company's largest BOT project, received an appointed date from the nodal agency, Uttar Pradesh Expressways and Industrial Development Authority (UPEIDA), in the first month of the third quarter, or October 2022.
The company has been able to save on interest charges and generate excess cash flow to the tune of Rs. 550 Cr in Q3FY23. as a result of the successful completion of the refinancing of 3 BOT Assets under its Private InvIT arm through the allocation of Redeemable Non-Convertible Debentures on a private placement basis. In order to fulfil their promise to contribute Rs. 1,045 Cr., or 49% of the total equity investment in the project SPV, the GIC Affiliates, Singapore issued the first tranche, totaling about Rs. 329 Cr, said IRB Infra.
Commenting on the Q3FY23 Financial Results, Shri Virendra D. Mhaiskar, Chairman & Managing Director of the Company said, “In addition to a strong financial performance, the quarter witnessed meaningful achievements on the business front as well. We received appointed date from UPEIDA for Ganga Expressway project and accordingly the construction activity on project has commenced. Subsequently we received 1st tranche of investment towards firm 49% commitment from the GIC Affiliates in this project. Also, another BOT Asset under Private InvIT completed its debt refinancing successfully to save on interest cost and generate surplus cash. With this we have completed refinancing of 3 BOT assets over last two quarters leading to sizeable cash savings." He further added, “Selecting projects in economically strong states has paid rich dividends. This is visible from the continued Y-o-Y as well as M-o-M robust growth witnessed in the Toll revenue across the projects."
The company received the appointed date for the Chittoor Thachur HAM Project in Tamil Nadu State during the quarter that ended in December 2022, or Q3FY23. Additionally, CRISIL upgraded the company's ratings to "CRISIL AA-/Stable/CRISIL A1+," and Fitch Ratings confirmed the "BB+" status of IRB Infrastructure Developers Limited's international long-term issuer default rating., Whereas, 99.99% of shareholders supported the board's proposal to split equity shares in a 10:1 ratio, with February 22, 2023 set as the record date.
Commenting on the future price action of IRB Infrastructure post-Q3 earnings, Ravi Singh, Vice-President and Head of Research at Share India said “IRB has an improved toll collections in the month of Jan on y-o-y basis. The stable reaffirmed rating by Fitch and 20 percent sharing in the Golden Quadrilateral project have made it a perfect bet for a long term portfolio. The stock is trading above its long and short term MAs and the momentum indicators are suggesting a strong move ahead upto 320 levels in the counter."
The shares of IRB Infrastructure Developers Limited closed today on the NSE at ₹290.55 apiece, up by 0.40% from the previous close of ₹289.40.
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